Landlord and Tenant Topic 2 by Abdul Jalil Omar Department of Real Estate Management Faculty of Technology Management and Business

Introduction In order to understand the nature of landlord / tenant laws, it is important to see how these laws interface with our legal systems.

Landlord responsibilities The PM, acting as an agent for the owner, must understand and obey the legal duties of the landlord. Many courts are holding on-site managers and property managers, as well as owners, legally responsible.

Landlord responsibilities Habitability Maintaining habitability in residential property is one of the most important responsibilities of the property manager. For example, many laws set forth conditions constituting as substandard building provision Waterproofing and weatherproofing Door and windows reasonably secure Hot and cold water (plumbing) Heating system in good working order Electrical system in safe working order Building in good repair (stairs and railings) Trash and garbage removal Free from pests Smoke detectors installed and working

Habitability (cont.)

Landlord responsibilities Discrimination In renting or leasing residential or commercial space, the landlord or PM cannot discriminate against a prospective tenant: Race Religion National origin Color Sex Familial status handicap

Landlord responsibilities Lawful discrimination The owner/PM is permitted to differentiate among tenants in the 3 following areas: Income and ability to pay rent Poor credit history History of violence or destructiveness

Tenant responsibilities Pay rent on time Maintain the rented premises in clean, sanitary and undamaged condition excluding normal wear and tear Give proper legal notice in writing e.g. moving notice is usually 30 days with a month-to-month tenancy Allow other tenants quiet enjoyment of their units Abide by reasonable rules and regulations of the landlord, e.g. pet policy Comply with local laws such as overcrowding provisions in rent-control laws Do not commit crimes against property, such as vandalism

Property Inspection Chechlist

No vandalism

Perjanjian Sewa Refer fail perjanjian sewa

Landlord remedies Notice to pay rent or quit Notice to correct breach of covenant or quit Notice to quit (30 days) Notice of belief of abandonment (service may by mail) Notice of right to reclaim abandoned personal property (when tenant leaves personal property) Change of terms notice Transfer of security deposit (upon sale of the property) Eviction Retaliation eviction (eg. Proof of nonpayment) Constructive eviction (eg. Turn off utilities, removes personal belongings) Actual eviction ( go to court using an ‘unlawful detainer action”) to remove the tenant and collect the unpaid rent

Tenant protection Repair and deduct Non waiver of tenant’s right-tenant cannot waive right of habitability Entry of tenant’s unit with 4 reasons Emergency (gas leak) To make necessary agreed repairs, provide service Abandoned or surrendered premises Pursuant to court order Forcible entry Seizing personal property (without court order) Removal vehicles

Legislations in Malaysia There is no specific landlord and tenant law in Malaysia. Certain provisions of the National Land Code 1965 contain provisions on leases and tenancies. Tenancy agreements are covered by the Contract Act 1950; eviction of tenants is covered in a couple sections in the Specific Relief Act. These laws are vague and toothless, usually to the advantage of the tenant.

Malaysian Legal systems Landlord and tenant issues and distress are handled by Sessions Courts. The court system is inefficient and is very costly compared to the amount to be recovered. Even if it seems that landlords do not have a problem in evicting non-paying tenants, recovering unpaid rents is a major problem.

Malaysian Legal systems EVICTION FOR NON-PAYMENT OF RENT Duration until completion of service of process 60 Duration of trial 90 Duration of enforcement 120 Total Days to Evict Tenant 270 Courts: The Lex Mundi Project

Deposits Tenants usually pay a security deposit of two to three months’ gross rental and another ½ month of rent as utility deposit. Rent is usually paid one month in advance.

Three Months’ Notice To Be Served Before Expiry Of Transition Period If the tenant is served with the three months’ notice before the expiry of the transitional period, the landlord will then be able to enter into a fresh tenancy with the tenant immediately after the transitional period i.e., with effect from 1 January 2000 (if both parties so wish), spelling out new terms and conditions obtaining in any ordinary tenancy agreement. Such interpretation is consistent with the tenant’s statutory right to occupy the premises throughout the transitional period as well as the landlord’s right to vacant possession of the premises immediately upon the expiry of the transitional period. The interests of both the parties have not in any way been prejudiced

To Inform The Tenant In Writing Well In Advance First, the landlord may make it a point to inform the tenant in writing, well ahead of the expiry of the transitional period (at least three months before 1 January 2000), of the automatic cessation of the deemed tenancy on 31 December 1999 pursuant to s. 11(1) of the Repeal Act. [Note: In fact, no formal notice of such cessation of the tenancy is required under the Repeal Act to be served on the tenant. The notice merely serves as a reminder; it is not a legal requirement.] At the same time, indicate to the tenant in the letter that he has to vacate the premises in accordance with the said provision of the Repeal Act by the end of the century.

Tenancy agreements usually last for a year. So, what rights do landlords and tenants have in Malaysia, especially as to duration of contract, and eviction? Tenancy agreements usually last for a year. Renewal with a possible rent adjustment must be mutually agreed upon. A notice to vacate must be given to the tenant three months before the expiration of the contract. The landlord has the right to vacant possession of the premises from the tenant without payment of any compensation. Tenancies are exempt from government registration. But detailed written contracts are encouraged to protect the landlord

References Law of Malaysia, Act 572, Control of Rent (Repeal) Act 1997 Control of Rent (Repeal) Bill 1997 National Land Code. Decarlo, 1997, Property Management End of Lecture